Many elderly people and their families are being lulled into a false sense of security regarding how the new cap on care funding will work.

While eight out of 10 over-50s were aware that the Government planned to introduce a cap, fewer than one in 10 of those questioned knew what the limit would be.

More worryingly, the majority of people surveyed by Saga thought that once a person needed care, the "meter" was effectively running towards the cap. This is not necessarily the case.

Tim Pethick, the director of strategy for Saga, said: "Our research clearly shows that the Government's publicity machine has worked wonders in ensuring that people are aware of the new safety net they've introduced. But people are being lulled into a false sense of security." He said many had been misled by the hype that they wouldn't have to sell their homes. This is not the case.

He added: "It is clear that mass confusion prevails around both the eligibility and calculation of the care cap. This lack of clarity does not bode well for the country, individuals or the politicians who will have to answer to the families that will still see their family home sold to fund care costs."

Although some of the details are yet to be finalised, we examine some of the common myths about care below.

Under the new rules I won't have to sell my home

MYTH The Government has made much of the fact that its new rules won't compel people to sell their homes when going into care. The commonsense interpretation of this means that the people going into care won't have to sell their homes at all, and will be able to leave it to their children. This is not the case. All the new rules will do is alter the timing of such a sale. Rather than be forced to sell it upfront when you go into care, the home will be sold after your death. The local authority will put a charge on your home, which will be recouped from your estate.

The maximum I will spend on care will be £70,000.

MYTH It is expected that the cap will be set at this amount. However, this does not mean that this is the maximum that you will have to pay for care.

The Saga survey indicated that 69pc of people thought accommodation costs would be included. They will not. A further 37pc thought food costs would be covered. Again, they will not.

This £70,000 "cap" will also exclude some personal care costs, such as hairdressing costs, help with dressing etc.

It is unclear whether the cost of help at home or more informal care given by relatives will be included. But it seems a pretty safe bet that they will not.

If you need nursing care, the local authority will make an assessment of what it will pay towards this cost. If you cannot find a nursing home to deliver this care at this price, or you cannot find one you like within this budget, you or your family will have to "top up" the difference. These additional payments will not count towards the care cap.

I will be able to leave a bigger inheritance under the new rules

PART MYTH This is not necessarily the case. The cap will help a small proportion of people who have substantial medical needs and spend years in care. But the average nursing home resident, who spends a little more than two years in care, will not really benefit from the change.

In addition, while it is possible for the local authority to put a charge on your home now, under the new rules it will also charge interest on what will effectively be an equity release scheme. Rather than just paying for the care fees from the sale of the home, people face paying care fees plus interest.

A relative may need care soon. I will be better off waiting for the new system to come in

MYTH This seems unlikely. If you are already paying for care, or getting a contribution from the local authority for nursing costs, this should still be taken into account once the new system comes into place.

There are also concerns that local authorities are going to struggle with the demands of the new system. Currently, many people who know they are not going to get any help with funding arrange their own nursing care. Once the new system is in place many will demand health assessments to ensure that any care they are paying for counts towards the new cap. It is feared that the influx could swamp services, which hardly have much spare capacity at present. From next year, local authorities will also be required to value and place long-term loans on people's properties. It remains to be seen what impact this will have on overstretched care services.

There won't be any change to the rules now

MYTH Some of the new rules would come into force only after the next election. So it may be that a new government takes yet another look at this whole area.

I own my home. There is nothing I can do to help cover care costs

MYTH If a family member needs care, it is a good idea to seek specialist financial help. A qualified adviser should be able to explain the different options available. Rather than simply selling the home and spending the proceeds, you may want to rent a property, buy an annuity, opt for an equity release scheme or even get the local authority to place a charge on the home.

They can also advise how current savings and investments can best be utilised and should provide information on what benefits are available. This should include the possibility of applying for continuing care if health needs are serious. If you qualify for this, all care costs should be met in full (by the NHS, rather than the local authority) regardless of how much money a person has.